We have all read recent stories about the increase in numbers of people looking for rentals. It raises a question. Does it still make sense to buy? The answer requires a potential buyer/renter to do some soul searching.
If you are looking for a short term place to live…..renting may make sense. However, I continue to firmly believe that home ownership is the foundation of a strong personal financial plan. Over the long hall, I believe a person will be better off owning property in terms of capturing future appreciation and taking advantage of tax benefits. In many ways the current trend towards renting reminds of the human tendency with stock purchasing: buy high and sell low. Of course that is the opposite of what you should do. So too with housing.
Right now we are seeing historic low pricing AND financing rates. Sure the real estate (and other) markets have seen a down turn, but that is exactly the time to think about buying in order to capture future upside and buy more home for the money! That being said, I’ve never thought the primary reason to buy a home is for investment purposes. The simple truth is you need a place to live. I believe there is something special about owning your own land and home. No need to get permission from a landlord on changing a paint color or putting in new cabinets. I also think there is a special pride in inviting people over to a property you own and lovingly care for, as opposed to a place you are renting from someone else.
I suspect we will look back on this time period and recognize it as a great time to have purchased a property. I’d be glad to help you take your first steps towards homeownership.